May 26, 2011 / 11:07 AM / in 6 years

UPDATE 1-Yukon-Nevada Gold settles class action suit

* Settles suit brought against it by former employees for $3.6 mln

* Settlement includes setting aside money for remaining 50 pct of severance payments (Follows alerts)

May 26 (Reuters) - Canadian gold miner Yukon-Nevada Gold said it agreed to settle a class action lawsuit brought against it by former employees for $3.6 million.

The company said the settlement includes setting aside money for the remaining 50 percent of the severance payments under the WARN Act, medical costs and certain 401-K contributions for approximately 394 employees laid off from Jerritt Canyon mine in Nevada in 2008.

“The funds, previously placed on deposit by the company, are to be distributed by a third party claims administrator pursuant to the settlement procedures and the court processes,” the company said in a statement.

Yukon-Nevada, which owns gold, silver, zinc and copper assets in Canada’s Yukon territory and British Columbia and in Nevada in the U.S., said the settlement is yet to be approved by the court and it expects the distribution process to take several months to complete.

Shares of the company closed at 56 Canadian cents on Wednesday on the Toronto Stock Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Sriraj Kalluvila)

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